For those new to the cryptocurrency scene, you may be lucky enough to never have heard of Mt. Gox.
Mt.Gox was a bitcoin exchange that at one point up to 70% of Bitcoin trades were going through.
It began in 2010, and ended horribly in 2014 when they announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time.
Mark Karpeles, although not the sites founder, bought the site in 2011 and took over as CEO. While his level of personal fault has been debated, he was the man in charge when in June of the same year when in response to a security breach Mt. Gox moved bitcoins from “cold storage” and it was all downhill from there.
Then, beginning in Nov 2013 customers were experiencing delays of weeks to months in withdrawing cash from their accounts, and by Feb 2014, Mt. Gox halted all bitcoin withdrawals, and by the end of the month the fiasco was blamed for a 36% loss in Bitcoin’s value.
Now, somebody’s out for revenge! A website called “GoxDox” is releasing leaked/hacked documents they claim expose a ‘behind the scenes’ even worse than the disaster the public already knew.
Short version of the story – they were ordered to sell the remaining coins they had to pay back whatever user losses they could. They did, but insisted it was all done “OTC”, a reference to over the counter trading where someone simply sells their Bitcoin to someone else directly.
When it’s done this way the price isn’t effected for the rest of the market, the price we all use comes from recent bids on exchanges, when nobody is bidding nothing can change.
But the leaked documents show internal discussions of selling off BTC on BitPoint, an exchange.
“How do we know it’s BitPoint? GoxDox is in possession of the trustee’s bank book, posted in full at the footer for your reading pleasure. BitPoint in Japanese is ビットポイント . (seen on screen shots here) Unless BitPoint is being really generous, we’d wager the reason they are depositing billions JPY into the trustee’s bank account is because they were hired to sell the MtGox Estate’s BTC/BCH.” says the leaker.
They then share further documention that outline a series of 25 large sell orders, spread out over a 3 month period and totaling $312 million.
But the biggest factor we’ve spotted and the most simple way to confirm a connection – the starting balance of the account is the same as Mt.Gox’s known remaining supply.
Legit or not? Decide for yourself – view the leaked documents here.
Author: Oliver Redding
Seattle News Desk